Total tax paid
$1,863
Did you know your employer also pays tax on your salary? It costs the employer $526 to pay you $8,700. In other words, every time you spend $10 of your hard-earned money, $2.14 goes to the government.
Real tax rate
20.2%
So, with you and the employer both paying tax, what used to be a 15.4% tax rate now rises to 20.2%, meaning your real tax rate is actually 4.8% higher than what it seemed at first.